RENT ADJUSTMENTS
Annual Adjustment Factor (AAF)
OVERVIEW
The AAF rent adjustment type applies to those projects who are still under their original Section 8 HAP contract in which the AAF is the method for adjusting contract rents. Submissions are generally due 60 days prior to the anniversary date of the Section 8 HAP contract.
An AAF contract rent increase is effective for contract months commencing on the later of:
(1) The annual contract anniversary date for which the adjustment is requested.
or
(2) The first contract month beginning at least two months after the owner has submitted all required materials to the Contract Administrator, but no later than two months before the next annual contract anniversary date.
HUD GUIDANCE
Section 8 Renewal Policy - Chapter 9: Rent Comparability Studies
HUD Handbook 4350.1, Chapter 7, Section 7-24
SUBMISSION REQUIREMENTS
Appendix 1 - Part 1 - Adjustment Worksheet
Appendix 2 - Part 2 - Adjustment Worksheet
Appendix 3 - Owner’s Certification of Compliance with the Requirements of HUD Notice 2002-10
Appendix 4 - Unit Turnover Report
Appendix 5 - AAF RCS Adjustment Worksheet
Rent Comparability Study (RCS)
RCS Cover Letter (if applicable): Michigan - Hawaii - Pennsylvania
Owner's Checklist for RCS Submission
Utility Allowance Analysis (if applicable)
Evidence of the Initial Difference which existed between the original contract rents and underwriting comparable, or the FMRs at the time of initial underwriting, including any AAF which was a part of the original rents. If this figure, and the documentation to support this figure, is not submitted, then HUD will use 10% of the initial Section 8 contract rent as a substitute for the initial difference.